Accounting

Each instance of Hub20 operates in a similar fashion as a bank. Even though each user has its own individual balance, it is only the hub operator who has direct access to the underlying funds and assets.

To keep track of user balances, there is an internal accounting system that uses double-entry bookkeeping. The system keeps one book, per token, per account, for the following entities:

• Treasury: keeps track of balances and funds that belong to the instance.
• User: each user balance book.
• Ethereum Account: funds under control of each specific wallet.
• Raiden Client: funds locked in Raiden channels
• External addresses: Ethereum addresses that do not belong to any wallet controlled by the hub

We should at the very least have the following equations being satisfied per token, else the site should be considered insolvent:

        (I)   Assets = Treasury + Ethereum Accounts + Raiden
       (II)   Assets >= User Balances